The three European Supervisory Authorities - European Central Bank, European Securities and Markets Authority and European Insurance and Occupational Pensions Authority - published a joint report in response to the European Commission’s February 2021 Call for Advice on Digital Finance.
The proposals aim at maintaining a "high level of consumer protection" and addressing risks arising from the transformation of "value chains, platformisation and the emergence of new ‘mixed-activity groups’, i.e groups combining financial and non-financial activities."
The ESAs note that the use of innovative technologies in the EU financial sector is "facilitating changes to value chains, that dependencies on digital platforms are increasing rapidly, and that new mixed-activity groups are emerging. These trends open up a range of opportunities for both EU consumers and financial institutions, but also pose new risks."
The ESAs recommend action to ensure the EU’s financial services regulatory and supervisory framework remains fit-for-purpose in the digital age.